How to pay IRA transfer fee?

[SJhawkins]

Short version,

Transfering a few IRAs to Vanguard.
Most of the funds transferd Friday, except about $200.

Logged into Vanguard Saturday and have a message that says add funds to your settlement account.

It looks like the sending institution is pulling back the termination fee from Vangurd.

I submitted a small order in all the the IRAs to cover the fees at Vanguard yesterday, Saturday.

Now I'm wondering if I should transfer some cash to cover the shortage, make the transfer order today Sunday. All the IRA have been funded for the year.

I was hoping the termination fees would have been pulled from my linked checking account but that does not seem like the case.

Never ran into this before, for the ones who are more savvy about transfers what is the correct way to do this or watch out for etc.?

Thanks

 

[LateToFIRE]

Who charges the transfer fee? The sending institution or the receiving institution. Asking as I'm in the process of making transfers too and nobody said anything about transfer fees.

 

[TheWizard]

Transfer/termination fees are sometimes from disreputable firms, such as EJ.
I've had zero fees doing partial transfers between TIAA and Vanguard...

 

[SJhawkins]

Who charges the transfer fee? The sending institution or the receiving institution. Asking as I'm in the process of making transfers too and nobody said anything about transfer fees.

In this case the transfer/termination fees are from WellsTrade, the sending institution.

 

[xlf11]

Ask the receiving side to reimburse the fees.

 

[Gotadimple]

I think you need to contact both brokers, but Wells first. Ask them to pull the transfer fee from your linked checking account as a courtesy to you and for the (however many years long) customer relationship you had. Both brokers have telephones they can talk through the logistics of this fee and resolve it.

I'm not sure Vanguard will pay the transfer fee for you. But you say that you've already entered a transaction to cover the fees on the Vanguard side. Ask Vanguard what the message is about - I wouldn't do another cash deposit because by the time that is complete your Vanguard transaction will post and the transfer would be completed (Monday-Tuesday).

It's always good to ask.

 

[SJhawkins]

My thought was to call Wells too but to be honest I'm not expecting much then 3rd or 4th tier service. Been with them for many years and still maintaining a small brokerage account but service is just dismal.

 

[iloveyoga]

Ameriprise charges $125 termination/transfer fee.

 

[MC Rider]

Transfer fee? Write em a bad check.

 

[SJhawkins]

Transfer fee? Write em a bad check.

Its tempting!

 

[TheWizard]

Ameriprise charges $125 termination/transfer fee.

Wow, that might be even more than EJ charges!

 

[Montecfo]

In my experience the receiving party will pay the fees.

 

[SJhawkins]

In my experience the receiving party will pay the fees.

From my understanding Vanguard does not, maybe I will be surprised. Will give them a call Monday to see what they have to say. It's 4 IRAs so sure it's going to be fun

 

[jazz4cash]

Transfer/termination fees are sometimes from disreputable firms, such as EJ.
I've had zero fees doing partial transfers between TIAA and Vanguard...

Reputable firms are guilty too sometimes.
NASA FCU charged $15 fee to transfer IRA funds to Fidelity. I only had $50 in the account!

 

[jazz4cash]

Ask the receiving side to reimburse the fees.

+1. Fidelity did this for me.

 

[MarieIG]

My old 401k withdrew the money before making the transfer (to Vanguard).

 

[SJhawkins]

Called Vanguard, basically sold a few funds to cover the fees.

Called Wells too and as expected they could not do much of anything.

Moral of the story, if possible have a few dollars in cash in either account before you transfer if moving from Wells.

Edit to add: Will be glad when this is all done. Next step is to convert all the funds to ETFs, mainly in the taxable account.